President Jacob Zuma held a report-back meeting on government’s Operation Phakisa initiative, which focuses on the maritime and oil and gas sectors, in Pretoria, last month.

Operation Phakisa aims to unlock South Africa’s economic growth and development through an oceans economy, which is expected to potentially contribute about R177-billion to the gross domestic product (GDP) by 2033.

Global legal practice Norton Rose Fulbright directors Lizel Oberholzer and Malcolm Hartwell spoke to Engineering News about some of the progress made in the sectors through Operation Phakisa.

Oberholzer, who is also Norton Rose Fulbright head of upstream oil and gas, provided an update on the Mineral Resources and Petroleum Develop-ment Bill, which is undergoing a Parliamentary process.

Passing the Bill is the first step towards creating an environment conducive to achieving one of several aspirations identified during the Operation Phakisa process, namely the drilling of 30 exploration wells over ten years in South Africa as part of its focus on offshore oil and gas exploration.

“To create an environment that promotes exploration, we need to have a clear and stable regulatory framework,” says Oberholzer, adding that the immediate obstacle regarding regulatory clarity pertains to State participation, particularly the free-carried interest that the State will have in exploration and production.

She says a balance needs to be struck between the creation of an investor-friendly environment and securing appropriate benefits for South Africa.

The Bill can help promote investment. Investors consider many factors before taking a decision to invest in a country, including geological risk, stability, clarity and ease of doing business.

Once the Bill has been finalised, it will be presented to the National Council of Provinces and traditional leaders for their comment. It will then be presented to Parliament for final approval, after which it will await Zuma’s signature.

Oberholzer hopes to see a fair and reasonable Bill, which will allow for investment to flow into South Africa, passed before the year-end.

“South Africa has the longest coastline in Africa and we can benefit from it if we develop it. Operation Phakisa is a step in the right direction and I am excited about the initiative,” she adds.

Hartwell, who is also a former president of the Maritime Law Association, provided feedback on the marine transport and manufacturing industry, which government believes can con-tribute up to R23-billion to the national GDP by 2019.